Rocket Lab signs five-launch deal with European Internet of Things satellite company Kinéis

An Electron rocket gets ready to launch.

Rocket Lab

Rocket Lab said Wednesday it signed a five-launch contract with European satellite data company Kinéis, adding to the space company’s backlog.

Kinéis is building an Internet of Things connectivity constellation with 25 satellites, all of which will be launched to orbit by Rocket Lab’s Electron vehicle. The Kinéis missions are scheduled to begin launching in the second quarter of 2023.

“It’s a very sophisticated customer, a very sophisticated spacecraft with really tough requirements … Electron’s demonstrated orbital accuracy and insertion enables this constellation to be launched like this,” Rocket Lab CEO Peter Beck told CNBC.

The Kinéis deal is the latest multilaunch win for Rocket Lab. Earlier this year, the company announced a contract with satellite imagery company BlackSky for five launches – and Beck sees a trend of bulk launch buying.

“We see this as continuing and there will be more news to follow,” Beck said.

Second-quarter results

The company rings the Nasdaq bell from its headquarters on Aug. 25, 2021.

Rocket Lab

Rocket Lab also reported second-quarter results after the market closed Wednesday, the company’s inaugural quarterly report since going public late last month.

The company had an adjusted EBITDA loss of $18.1 million in the first half of the year, with the second quarter ending June 30. At the same time, Rocket Lab brought in $29.5 million in revenue and expanded its backlog to $141.4 million – up from a backlog of $59.9 million in the year-earlier period.

Rocket Lab’s launch business brought in $24.1 million in the first half of 2021, while its space systems unit had $5.4 million in revenue.

Shares of Rocket Lab rose as much as 7% in after-hours trading. The stock has climbed nearly 45% since the company went public on Aug. 25.

The company forecast third quarter revenue of $4 million to $5 million, with fourth quarter revenue of $17 million to $20 million. Rocket Lab noted that Covid-related shutdowns in New Zealand, where it has significant operations and launches its rockets, will cost the company between $10 million and $15 million.

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(With Inputs from cnbc)

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